A1 APPLIANCES (MANCHESTER) LTD.

CORPORATION TAX COMPUTATION FOR THE PERIOD ENDED 31ST MARCH 2005 A) ADJUSTED PROFIT £ Profit per Account Add Depreciation ADJUSTED PROFIT PROFITS AND GAINS FROM NON-TRADING LOAN RELATIONSHIPS Deposit account interest Profits Current year Trading Losses FROFITS CHARGEABLE TO CORPORATION TAX MEMO: There are no Associated Companies CORPORATION TAX CHARGEABLE CORPORATION TAX OUTSTANDING MEMO: Summary of trading losses Trading Loss Utilised (s393A) Losses brought forward Available for carry forward 680 1 679 41,286 41,965 NIL 1 1 (1) NIL (680) (680)

CORPORATION TAX PAYABLE YEAR 2004-2005 PROFITS £0 RATE 19% TAX Nil

A1 APPLIANCES (MANCHESTER) LTD.

REPORTS AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2005

DEBDALE HOUSE 2 BRIGHTON RANGE MANCHESTER M18 7LP

YACOOB MALIK & CO. ACCOUNTANTS & LEGAL CONSULTANTS

A1 APPLIANCES (MANCHESTER) LTD.

COMPANY NO. 4211477

( ENGLAND AND WALES )

OFFICERS AND PROFESSIONAL ADVISERS OF THE COMPANY

DIRECTORS

R CONNOLLY P MARTIN W F MARTIN

SECRETARY

P MARTIN

REGISTERED OFFICE

548 HYDE ROAD GORTON MANCHESTER M18 7AA

ACCOUNTANTS

YACOOB MALIK & CO. ACCOUNTANTS & LEGAL CONSULTANTS DEBDALE HOUSE 2 BRIGHTON RANGE MANCHESTER M18 7LP

A1 APPLIANCES (MANCHESTER) LTD.
REPORT OF THE DIRECTORS The Directors have pleasure in submitting their Report and Accounts for the period ended 31 March 2005 PRINCIPAL ACTIVITIES, REVIEW OF THE BUSINESS AND FUTURE PROSPECTS The company carries on the business of Domestic Appliances and Furniture Retail. The company has not enjoyed a satisfactory period's trading. However, the Directors are of the opinion that the business will continue to operate in satisfactory manner in the future.

RESULTS AND DIVIDENDS ( a ) The Company made a Loss of £680 ( b ) No Dividends have been paid during the year. ( c ) This leaves a Loss of £680 in retention DIRECTORS The following Directors held office throughout the year. Their interest in the shares of the business at the beginning and end of the year was as follows: NAME OF DIRECTORS R CONNOLLY P MARTIN W F MARTIN FIXED ASSETS Full details of changes in fixed assets are given in the notes to the accounts. CASH FLOW STATEMENT The Company is exempt from the requirement of Financial Reporting Standard Number 1 to prepare a cash flow statement as it qualifies as a small company. CLASS OF SHARES Ordinary NUMBER HELD 2005 8 26 15 2004 8 26 15

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A1 APPLIANCES (MANCHESTER) LTD.
REPORT OF THE DIRECTORS ( Continued )

CLOSE COMPANY STATUS This Company is a close Company within the meaning of the Income and Corporation Taxes Act 1988

By Order of The Board

-----------------------------------------------SECRETARY P Martin DATE:-------------------------------

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A1 APPLIANCES (MANCHESTER) LTD.
PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31 MARCH 2005

Note Turnover Cost of Sales Gross Profit Operating Expenses Operating Profit / (Loss) Interest Receivable Interest Payable Profit and Loss on ordinary activities Taxation Profit and Loss on ordinary activities after Taxation and Retained Profit and Loss for the year Balance Brought Forward Balance Carried Forward (3) (4) ( 5) (2)

£ 2005 47,737 7,904 39,833 39,778 55 1 736 (680) (680) (37,265) (37,947)

£ 2004 46,044 7,103 38,941 45,627 (6,686) 1 760 (7,445) (7,445) (29,820) (37,265)

Turnover, Operating Expenses and Operating Profit / Loss derived exclusively from continuing operations. There have not been any acquisition. Operating Expenses solely comprise administrative Expenses. ---------------------------------------------------------------------------------------------STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE PERIOD ENDED 31 MARCH 2005 There were no recognised gains or losses in year 2005 or 2004 other than the profit / Loss for the year. The Notes on pages 6 to 10 form part of these Accounts

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A1 APPLIANCES (MANCHESTER) LTD.
BALANCE SHEET AS AT 31 MARCH 2005 FIXED ASSETS Note 2005 £ Tangible Assets CURRENT ASSETS Stock Debtors and Prepayments Cash at Bank Cash in Hand CREDITORS Amount falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS LIABILITIES CREDITORS Amount falling due after one year ( 10 ) (1,544) (30,119) CAPITAL AND RESERVE Called up Share Capital Profit and Loss Account ( 11 ) 100 (30,219) (30,119) The company is entitled to exemption from audit under Section 249A of the Companies Act 1985 for the year ended 31 March 2005 No notice has been deposited under section 249B(2) of the Compsnies Act 1985 in relation to its accounts for the financial year. The directors acknowledge their responsibilities for; (a) Ensuring that the company keeps accounting records which comply with Section 221 of the Compsnies Act 1985. 100 (37,265) (37,165) 5,148 (37,165) (9) 70,240 (52,936) (28,575) 73,388 (56,378) (32,017) (8) 15,304 2,000 17,304 15,010 2,000 17,010 (7) 24,361 2004 £ 24,361

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A1 APPLIANCES (MANCHESTER) LTD.
BALANCE SHEET AS AT 31 MARCH 2005 ( Continued) (b) Preparing Accounts which give a true and fair view of the state of the affairs of the Company as at the end of each financial year and of its Profit or Loss for each financial year in accordance with the requirement of Section 226 and which otherwise comply with the requirements of the Companies Act 1985 relating to accounts, so far as applicable to the company.

THE NOTES ON PAGES 6 TO 10 FORM PART OF THESE ACCOUNTS

------------------------------------------------------ DIRECTOR

THESE ACCOUNTS WERE APPROVED BY THE DIRECTORS ON ----------------------------------------------------

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A1 APPLIANCES (MANCHESTER) LTD.
NOTES TO THE ACCOUNTS

1. PRINCIPAL ACCOUNTING POLICIES The financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom. The following accounting policies have been consistently applied in dealing with items which are considered material in relation to the company's accounts. a) BASIS OF ACCOUNTING All items in the accounts are stated under the historical cost accounting rules. b) DEPRECIATION Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows; 2005 Fixtures & Fittings Motor Vehicle Computers c) DEFERRED TAXATION Deferred Taxation is provided at the current rate of corporation tax on the liability method, in respect of tax deferred by taxation allowances and timing difference except to the extent that there is a reasonable probability that liability will not arise within the foreseeable future. 2. TURNOVER Turnover represents the amount invoiced in respect of goods sold and services provided during the year excluding VAT. The turnover and pre-tax Profit/Loss are attributable to the principal activity of the company. 0% 0% 0% 2004 15% 25% 25%

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A1 APPLIANCES (MANCHESTER) LTD.
NOTES TO THE ACCOUNTS

3. INTEREST PAYABLE: Hire Purchase Interest 4. PROFIT/LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION This is stated after charging: Depreciation 5. TAXATION Corporation tax on profit for period 6. STAFF COSTS AND SELF EMPLOYED Details of staff costs including the Directors were as follows; Wages and Salaries The average number of employees during the year was as follows: 13,560 2 13691 2 2005 £ 2004 £ -

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A1 APPLIANCES (MANCHESTER) LTD.
NOTES TO THE ACCOUNTS

7. FIXED ASSETS Land & Buildings COST At 1 APRIL 2004 Disposal Additions AT 31 MARCH 2005 £ 7,525 7,525 Plant & Machinery £ 22,574 22,574 30,099 Total £ 30,099 -

DEPRECIATION AT 1 APRIL 2004 Charge for the year AT 31 MARCH 2005 NET BOOK VALUE AT 31 MARCH 2005 AT 31 MARCH 2004 7,525 7,525 16,836 16,836 24,361 24,361 - 5,738 5,738 5,738 5,738

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A1 APPLIANCES (MANCHESTER) LTD.
NOTES TO THE ACCOUNTS 2005 8. DEBTORS & PREPAYMENTS Debtors Prepayments 9. CREDITORS: Amount falling due within one year Bank loans and overdraft Hire Purchase Other creditors Directors Current Account V,A.T Social Security & Other Taxes Accrued expenses 589 1,264 44,170 21,215 662 2,340 70,240 526 3882 44,170 21,400 866 544 2000 73,388 £ 2000 2004 £ 2000 -

10. CREDITORS: Amount falling due after one year Hire Purchase 2,808 5148

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A1 APPLIANCES (MANCHESTER) LTD.
NOTES TO THE ACCOUNTS

ISSUED AND 11. SHARE CAPITAL AUTHORISED 2005 £ Ordinary Shares of £1 each 1000 FULLY PAID 2004 £ 100 AUTHORISED 2005 £ 1000

ISSUED AND FULLY PAID 2004 £ 100

12. RECONCILIATION OF MOVEMENT IN SHAREHOLDER'S FUNDS

2005 £ Profit/Loss for the financial year Opening Shareholder's Funds Closing Shareholder's Funds (680) (37265) (37945)

2004 £ (7445) (29820) (37265)

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A1 APPLIANCES (MANCHESTER) LTD.
TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2005 2005 £ SALES / TURNOVER Cost of Sales Other direct costs Gross Profit LESS EXPENSES: Premises Costs Directors remuneration Wages Telephone Postage & Stationery Advertising Motor expenses Repairs & renewals Cleaning expenses Sundry expenses Accountancy Finance costs Bank interest Hire purchase Bank Charges TRADING PROFIT / LOSS FOR THE YEAR 736 4,248 4,984 (680) 24 736 1,729 2,489 (4,674) 11,225 5,258 8,302 1,314 904 6,377 71 284 1,795 35,530 4,303 15,685 5,209 8,482 2,470 367 376 5,948 99 1 2,490 41,127 (2,186) 7,904 7,904 39,833 £ 47,737 7,103 7103 38941 £ 2004 £ 46,044

THIS PAGE DOES NOT FORM PART OF THE STATUTORY ACCOUNTS

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REPORT OF THE ACCOUNTANTS TO THE SHAREHOLDERS OF LAND OF FURNITURE LIMITED LTD. A1 APPLIANCES (MANCHESTER) FOR THE YEAR ENDED 31 MARCH 2005

In accordance with instructions given to us, and without auditing, we have prepared the accounts for the year ended 31 March 2005 set out on pages 3 to 10 from accounting records and from information and explanations supplied to us by the management of the Company.

……………………………………………….. YACOOB MALIK & CO. ACCOUNTANTS AND LEGAL CONSULTANTS DEBDALE HOUSE 2 BRIGHTON RANGE MANCHESTER M18 7LP ________________________________________

THIS PAGE DOES NOT FORM PART OF THE STATUTORY ACCOUNTS